Bankruptcy Facts
Bankruptcy Is a Legal Right
Bankruptcy is a legal right guaranteed by the laws of the United States. It is designed to help people restructure or wipe out all or some or all of their debt. Bankruptcy cases are governed by the federal Bankruptcy Code and are administered by the bankruptcy courts.
When you file a bankruptcy, you are called a debtor. As a debtor you use the bankruptcy code to get a fresh start.
Personal bankruptcy is meant to provide you relief from your debt. If your bankruptcy ends with a discharge, your creditors’ rights against you are forever terminated. Under federal law, your creditors may not come back after you to collect discharged debts.
Debts That Are Typically Discharged
Below is a list of the most common dischargeable debts. It must be noted that any misconduct or fraud in connection with the below categories might deem the debt non-dischargeable.
- Credit card debts
- Collection accounts
- Medical bills
- Personal loans
- Utility bills
- Repossession deficiencies
- Auto accident claims (except those involving a criminal offense)
- Business debts
- Lease debts
- Judgments (unless there is fraud)
- Tax debt past a certain number of years
- Attorney fees
- Revolving charge accounts
You Will Rarely Lose Property if You File Bankruptcy
A common misconception of bankruptcy has to do with what property you are allowed to retain. Most of our clients get to keep all of their property. We can advise you about what assets you will be able to keep.
Bankruptcy is a powerful tool that we can use to help you get a dignified fresh start. We have helped over 5,000 people solve their financial problems. Call us today for a free consultation to see if we can help you.
